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Community radio licences: Havant, Stoke on Trent, Pontypridd, and Neath and Port Talbot

Applications for community radio licences in three different areas were considered by Ofcom's Radio Licensing Committee (RLC) on 7 April 2005. Four community radio licences were awarded and the reasons for award in each case are detailed below.

With regard to the 'characteristics of service' for community radio (set out below), the Ofcom Radio Licensing Committee (the RLC) was satisfied that each of the groups awarded a licence fulfilled the requirements set out in the Community Radio Order. In addition, each application was considered against the selection criteria set out in section 105 of the Broadcasting Act 1990 as modified by the Community Radio Order (these are also set out below).

Finally, the RLC was satisfied that each group awarded a licence should be allowed to seek up to 50% of its annual income from the sale of advertising or programme sponsorship if it wishes, in accordance with section 105(6), and that the services would not prejudice unduly the economic viability of any other local service (section 105(3)).

Solent

Seven applications were received from groups in the Solent area (The Radio Foundation, Chichester; Angel Radio, Havant; Express FM, Portsmouth; Angel Radio, Isle of Wight; The Island's Play, Isle of Wight; Unity 24, Southampton; and Skyline Community Radio, Hedge End, West End and Botley). The RLC decided to award a licence to Angel Radio (Havant). Two other applications, from The Island's Play (Isle of Wight) and The Radio Foundation (Chichester) were considered, but have not been awarded a licence. Ofcom is currently investigating whether there will be other frequencies available in the Solent area to enable further community radio services to broadcast. If further frequency resources are available, then Ofcom will grant more community radio licences in this area.

Angel Radio (Havant): The RLC was impressed by this well-established group. It considered the application was particularly strong in its social gain objectives (section 105(1e) of the Broadcasting Act 1990), in how well its output catered for the tastes and interests of its target community (1b) and broadened choice in the area (1c), in its arrangements for access to the station (1g) and accountability (1f), and in the support it had received from the over-60s of Havant (1d).

Staffordshire

Three applications were received from groups in Staffordshire. The RLC decided to award a community radio licence to Cross Rhythms City Radio. The two other applications in Staffordshire, from FORward Radio (Stoke on Trent) and Smart Radio (Stone), were considered, but have not been awarded a licence.

Cross Rhythms City Radio (Stoke on Trent): The RLC viewed this group's proposals favourably in relation to all of the statutory selection criteria. It has a good track record in securing the funding it needs (section 105 (1a)), has good links and demonstrable support both within the Christian community of the area and within the wider community (1d), and has well-considered social gain objectives reflecting an inclusive approach to the whole community as well as its core Christian target group (1e).

South Wales

Five applications have been received from groups in South Wales. The RLC only considered two of them at this time, the other three applications will be considered at a later date.

The RLC decided to award licences to both GTFM and AfanFM. In considering whether the economic viability of any other local service would be unduly prejudiced by the award of a community radio licence, and the terms of any such licence, the RLC took particular account of the fact that there is a small-scale commercial radio station, Bridge FM, nearby (Bridge FM serves Bridgend and the surrounding area). The RLC concluded, on the basis of an economic impact assessment carried out by Ofcom, that licensing community radio services in Pontypridd and Neath and Port Talbot would not prejudice unduly the economic viability of Bridge FM.

GTFM (Pontypridd): In deciding to offer a licence to GTFM, the RLC considered that this group's ability to offer a good range of training, both in the town and at the university (section 105 (1e)), as well as access to the station for its two core target communities (students and local residents) (1g) were its main strengths.

AfanFM (Neath and Port Talbot): The RLC was impressed with AfanFM's plans to give young people a forum to express their views (section 105(1e)), to get involved with the operation of the station and receive appropriate training (1g), and the support it has attracted from a good range of governmental and other bodies (1d).

Each service will be licensed on FM for a five-year period.

The following pages set out the statutory requirements relating to community radio licensing, and details of the licensing process. Further information about these, and detailed information relating to community radio, can be found at:

www.ofcom.org.uk/radio/ifi/rl/commun_radio/

Statutory requirements relating to community radio licensing

In carrying out all of its functions, Ofcom is required to have regard to the general duties set out in section 3 of the Communications Act 2003. In addition, under section 85(2)(b) of the Broadcasting Act 1990, it is the duty of Ofcom to do all that it can to secure the provision within the UK of a range and diversity of local radio services.

The characteristics of a community radio service

In respect of the licensing of community radio services in particular, all community radio licensees must satisfy ‘characteristics of service' requirements which are specified in Article 3 of the Community Radio Order. The characteristics of community radio services are:

• That they are local services provided primarily for the good of members of the public, or of particular communities, and in order to deliver social gain, rather than primarily for commercial reasons or for the financial or other material gain of the individuals involved in providing the service;
• That the service is intended primarily to serve one or more communities (whether or not it also serves other members of the public);
• That the person providing the service does not do so in order to make a financial profit by so doing, and uses any profit that is produced in the provision of the service wholly and exclusively for securing or improving the future provision of the service, or for the delivery of social gain to members of the public or the community that the service is intended to serve;
• That members of the community it is intended to serve are given opportunities to participate in the operation and management of the service;
• That, in respect of the provision of that service, the person providing the service makes himself accountable to the community that the service is intended to serve.

Specific community radio licence award criteria

There are seven specific selection criteria set out in subsection 1 of section 105 of the Broadcasting Act 1990 as modified by the Community Radio Order that Ofcom must have regard to when considering whether to make a community radio licence award. In summary these are:

• The ability of each applicant to maintain its proposed service over the licence period (section 105(1)(a));
• The applicant's ability to cater for the tastes and interests of the target community (s ection 105(1)(b));
• The extent to which each applicant would broaden the range of local commercial radio services available in the area, and have a content distinct from those services (section 105(1)(c));
• The extent to which there is evidence of local demand or support for a proposed service (section 105(1)(d));
• The extent to which the service would deliver social gain benefits to the public or relevant community (section 105(1)(e));
• Provisions for making the operator of service accountable to the relevant community (section 105(1)(f));
• Provisions for allowing access by members of the public or the relevant community to the station facilities, and the provision of training in the use of those facilities (section 105(1)(g)).

In addition, in considering whether, or to whom (and on what conditions), to grant a community radio licence, Ofcom must have regard to the need to ensure that any service provided under that licence does not prejudice unduly the economic viability of any other local service. In particular in this respect, subsections 4 to 6 of section 105 require Ofcom:

• not to grant a community radio licence which would overlap with a commercial radio service serving no more than 50,000 persons of 15 years or older;
• to prohibit paid advertising and sponsorship of programmes in respect of any community radio service where that service overlaps with any other local radio service serving between 50,000 and 150,000 persons of 15 years or older; and
• in all other cases, to prohibit any community radio service from receiving an appropriate proportion (at least 50%) of relevant income from paid advertising and sponsorship of programmes.

Ofcom is also prohibited, by subsection 2 of section 105, from granting a licence to any applicant who proposes to receive from any one person (or company) more than 50% of its annual funding.

Process for assessment of applications

On 1 September 2004 Ofcom invited applications for licences to provide community radio services in most parts of the United Kingdom . These licences were offered for the provision of services on either the FM (VHF) or AM (medium wave) wavebands. The invitation did not specify the locations of services, but left it for applicants to decide where they wanted to be located.

Ofcom received 194 applications, the non-confidential sections of which were made available for public scrutiny on the Ofcom website.

Given the large number of applications received for community radio licences, Ofcom has decided to assess them in order of priority by first considering applications in areas where the 14 pilot community radio (formerly known as 'Access Radio') stations are currently broadcasting. This involves over 70 applications, and includes areas such as London, Manchester and Glasgow.

Ofcom is aiming to make decisions in these areas before the end of July, before moving on to look at applications for areas not involved in the pilot scheme. Ofcom expects to complete this round of the community radio awards process by the autumn.

The membership of the RLC for the licence awards and non-awards detailed above was as follows:

Kip Meek, Senior Partner, Competition & Content (Chair)
Ian Hargreaves, Ofcom Board member (Co-chair)
Peter Bury, Director of Strategic Resources
Martin Campbell, Head of Content & Standards Radio Team
Peter Davies, Head of Market Intelligence
Pam Giddy, Content Board member
Neil Stock, Head of Radio Planning & Licensing.

Summary assessments of the applications were presented to the RLC at its meeting on 7 April 2005. These papers summarised the proposals put forward by the applicants as they relate to the statutory criteria, and highlighted any issues of relevance under those criteria.

 

20 April 2005

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